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  • Revision Summer 2012 Q2 Part Solution

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    Fateha Karim
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    The income statement for the year ended 31 December 2011 shows sales of $3,865,000 with returns of $12,350, resulting in net sales of $3,852,650. Cost of goods sold was $3,117,700, resulting in a gross profit of $734,950. Expenses totaled $440,340, leaving a profit before interest and tax of $331,110. After deducting interest of $14,000 and tax of $86,500, profit after tax was $230,610. Retained earnings increased from $398,570 to $593,180 after deducting dividends of $36,000.

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    Revision Summer 2012 Q2 Part Solution (3)

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    The income statement for the year ended 31 December 2011 shows sales of $3,865,000 with returns of $12,350, resulting in net sales of $3,852,650. Cost of goods sold was $3,117,700, resulting in a gross profit of $734,950. Expenses totaled $440,340, leaving a profit before interest and tax of $331,110. After deducting interest of $14,000 and tax of $86,500, profit after tax was $230,610. Retained earnings increased from $398,570 to $593,180 after deducting dividends of $36,000.

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    5 views1 page

    Revision Summer 2012 Q2 Part Solution

    Uploaded by

    Fateha Karim
    The income statement for the year ended 31 December 2011 shows sales of $3,865,000 with returns of $12,350, resulting in net sales of $3,852,650. Cost of goods sold was $3,117,700, resulting in a gross profit of $734,950. Expenses totaled $440,340, leaving a profit before interest and tax of $331,110. After deducting interest of $14,000 and tax of $86,500, profit after tax was $230,610. Retained earnings increased from $398,570 to $593,180 after deducting dividends of $36,000.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    of 1

    Income Statement for year ended 31 Dec 2011

    Sales 3,865,000
    Less Returns In (12,350)
    3,852,650
    Less Cost of Sales
    Op Inv 228,700
    Purchases 3,210,400
    3,439,100
    Cl Inv (321,400)
    3,117,700
    Gross Profit 734,950
    Discount Received 36,500
    771,450
    Less Expenses:
    Marketing Exps (42100-2500) 39,600
    Telephone Exps 6,200
    Insur 13,500
    Rent 36,000
    Light & Heat 8,700
    Audit Fees (Accrual) 8,300
    Directors Remuneration 75,000
    Wages & Salaries 125,400
    Bad Debts W2 101,200
    Depreciation - Buildings 17,520
    - Motor Vehicles 8,920
    440,340
    Profit Before Interest & Tax 331,110 Operating Profit

    Interest (350000 x 4%) 14,000


    317,110
    Taxation 86,500
    Profit After Tax 230,610

    Retained Earnings As at 1 Jan 2011 398,570


    Dividend declared 1.2m x 3% (36,000)

    Retained Earnings As at 31 Dec 2011 593,180

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